Miranda, Casimiro V.Llanto, Marinella Gilda N.Guzman, Marsha Leia J.2025-02-212025-02-211999-10https://selib.upd.edu.ph/etdir/handle/123456789/4890Lotto, like any gambling pursuit, has been frowned upon by society in general. The Catholic Church has been especially adamant of its operations because of ethical and social considerations. The government, however, upholds the legal operation of lotto with the belief that revenues generated from it would subsequently finance pro-poor projects. Putting moral judgement aside, the paper delves into the economic impact of lotto on the fiscal performance of selected cities in the Philippines. The main objective of the paper is to evaluate whether revenues generated from lotto tend to substitute for local revenue effort. Revenue effort, measured as the ratio of actual revenue to GDP, provides the basis of the evaluation. Using the city as the unit of analysis, revenue effort was then regressed on revenues from lotto and on other variables namely, internal revenue allotment, grants, population density and classification of cities. The paper hopes to inform the debate on whether or not it is a good public policy to encourage lotto.enLottoGamblingThesis